Germany’s lost year is finally over

Bearish market: Scholz (left) talks to factory manager Peter Weber during a visit to German carmaker BMW plant in Munich. Germany’s factory orders in October were close to the lowest level since mid-2020. — AFP

BERLIN: Even if Germany’s economy finally begins expanding again in 2024, it’ll struggle to shake off the funk behind one of its weakest annual performances in a generation.

Beset by energy woes and creaking infrastructure, hit by a downturn in global demand, and lagging in the race for electric-vehicle dominance, the country was probably in recession as it ended 2023, with a shock court decision that undermined Berlin’s whole strategy for budget financing.